Monday, May 30, 2011

Short Entry on EUR/USD? 9:00PM CST 5/30

(Chart 1 - EURUSD 60 min chart zoomed)
(Chart 2 - EURUSD 60 min chart)
(Chart 3 - EURUSD Daily w/ minor MML drawn)
(Chart 4 - EURUSD Daily w MML drawn)

1.4400-1.4425 is very strong resistance in the EUR/USD both short term and intermediate term. This recent bailout news got us to 1.4415 and closed at 1.4398 on the 8-9PM hour bar. I like selling the open of the 9PM bar (1.4399) for a move down to 1.4075 and ultimately 1.3675.

Be conservative in your sizing and liberal in your stop. This trade might be subject to 1 or 2 lurches and shakeouts with new highs on low volume before it makes its move for those targets.
You can always sell more once its makes its move and has a pullback.

(Note: If you see high volume doji and/or shooting stars in the 1.4400-1.4430 area on a small time frame chart, consider using that as your entry if you want to wait for one of those instead of just selling right here right now. Might not see one, but if you do, will be a much higher probability setup)


  1. I just got short the EUR/USD @1.4430. Are you still holding a short position?


    Yes I think it is still good here